Kathy Kuhn - My name is Kathy Kuhn. I'm with an
organization called People for Positive Social Change at LCC and we
had drafted a copy of a resolution against parts of the Patriot Act.
It was revised and we have a copy?there's a copy in the agenda and I?d
like to raise support for this. In terms of the conflict that could
happen with higher education and the freedom of
information?especially?also with international students who can be
negatively affected by some of the terms of the Patriot Act. As we
may know there are people who have been detained, especially people of
middle-eastern background, for long periods of time without access to
counsel; without being charged with any crime and so it's rather?in
fact the Patriot Act is a 3,000 page document, but within that
document there are certain things in there that (inaudible) for people
in this country. And, so, I would just like to voice support for
that. If you could all even maybe read it it's easier than me reading
it and I would recommend to the Board that if this does pass, as I
would hope that it does, it would be part of a concerted effort that's
going on around the country. The states of Hawaii and Alaska as well
as many, many organizations like the New York Library Association,
etc., etc., etc., have passed resolutions including the Lansing City
Council, Meridian Township, etc., but if this does pass I would
recommend that copies of the resolution are not only posted around the
Lansing Community College campus, but as well are sent to
representatives in the state, local, and federal government. Thank
you.

Public
Hearing

The Board published a notice on Monday, May 10,
2004 of this public hearing on the budget for the 2004-2005 fiscal
year, which the College proposes to levy 3.8544 mills. This millage
rate is the amount of millage to be levied to support the fiscal year
2004-2005 and the approval of the budget by the Board of Trustees will
meet the requirements of the truth in taxation statute for levy of the
proposed mills.

Chairperson Laverty opened the floor for
comments.

There were no comments from the public.

Chairperson Laverty closed the public hearing.

CHAIRPERSON AND BOARD MEMBER REPORTS

Chairperson Laverty adjusted his report. He
announced that the recipient of the National Community College Month
scholarship was present. He asked President Cunningham to elaborate.

President Cunningham stated that for the past 10
years, Lansing Community College has issued a 24-credit scholarship to
the first baby born on April 1 in celebration of National Community
College Month. She announced that Jos?Robert Guti?rez was this
year?s recipient born to Jos?and Renee Guti?rez. President
Cunningham stated that Ms. Renee Guti?rez is a teacher for Waverly
Schools and Mr. Jos?Guti?rez is a student at Lansing Community
College and works at an elementary school. She asked them to stand
and be recognized.

Ms. Guti?rez thanked the College for helping
Jos?start off on the right foot.

President Cunningham thanked Chairperson Laverty
for having accompanied her to the hospital when the baby was born.

President Cunningham and Chairperson Laverty
thanked the Guti?rez family for taking time out of their busy
schedule to be in attendance.

IT WAS MOVED by Trustee Pelleran and supported by
Trustee Murray to approve the Patriot Act Resolution.

Chairperson Laverty announced that there was a
minor change to section four on the second page. The name John
Ashcroft was removed and it only reads ?the Attorney General.? He
said it did not need to be that specific.

Trustee Rasmusson stated that he would be voting
against it. He said the fascist might have been able to beat us and
in the late 1970?s the communists were close to strategic victory, but
he doesn?t think the terrorists will prevail unless we move the moral
high ground. Trustee Rasmusson said he is not enthusiastic about the
restrictions, but he will be voting against it.

Chairperson Laverty stated that Ms. Carolyn
Bailey has been selected as the facilitator for the Board development
session. He gave a brief background on Ms. Bailey. Chairperson
Laverty announced that the dates for the session are the evening of
Thursday, June 17 and the morning of Friday, June 18. Prior to these
dates Ms. Bailey will be conducting telephone interviews with the
Trustees; and the interviews should last about an hour. He asked the
Trustees to call Ms. Norma Mendez to schedule the times and dates with
Ms. Bailey.

Trustee Brannan asked if there was an outline of
what she will be asking the Trustees.

Chairperson Laverty asked Mr. Howard to forward
the list of questions she will be asking the Trustees.

Chairperson Laverty stated that the goal of the
session is to improve the trust and communication levels in order to
enhance the effectiveness of the Board. He hoped this would only be
the first session of several the Board will have over the next couple
of years. He sees the long term goals for the Board are improving the
effectiveness of the Board's strategic thinking; focusing on long-term
vision; monitoring the organization?s performance; learn how to be
effective stewards of the College; the Board's role in systems
thinking; and continued improvement of Board processes.

Other

Chairperson Laverty reported on the following
items he was involved with:

?April 21 - Capital Area Higher Education Network
Outstanding Adult Learner Awards held at Cooley Law School. He was
there representing a GM UAW employee, but he was pleased to see that
Ms. Jean Morciglio received an award that evening from Michigan State
University.

?April 23 - Press Conference at the M-TEC?
regarding a partnership between Lansing Community College and HAAS
Machine Tools.

Trustee Proctor reported that he attended the
recognition banquet and he also attended the Foundation scholarship
breakfast on May 12.

Trustee Murray gave a brief report on graduation
held on May 14. She said it was a fun evening and it was one of the
more moving things to see. The relationship between faculty and
students was very impressive. Trustee Murray felt it was a wonderful
celebration.

Chairperson Laverty reminded the Board of the
Vietnam Veterans Golf Benefit coordinated by Mr. Bob Baldwin on June 3rd
at Eldorado Golf Course, and of the Michigan Community College
Association summer workshop July 22-24. He asked President Cunningham
to provide an update on the success of the Women?s softball team.

President Cunningham reported that the Women?s
Softball Team won its fifth consecutive National Junior College
Athletic Association Division II regional championship with victories
over Glen Oaks and Grand Rapids on Saturday, May 15. The team is on
their way to Iowa to play in the national championship. She thanked
everyone that has supported the softball team. President Cunningham
recognized them for being a superior team and expressed how everyone
is very proud of them. She expressed what a wonderful coach Bob Every
is and how much the players adore and respect him.

Board Member Reports

Trustee Robert Proctor - Workforce Development
Board

Trustee Proctor reported that he attended the
last meeting on May 5. He stated that WorkFirst programs were
discussed, but did not give a report on this area since there was a
spotlight scheduled regarding WorkFirst. Trustee Proctor reported
that Capital Area Michigan Works! is receiving
an additional $46,000 on the Workforce Investment Act for dislocated
workers. This program provides core, intensive training for
individuals 18 years of age and older who have lost their jobs.
Recently Capital Area Michigan Works! advertised for a request for
proposal for funding for programs to increase high school completion
in the capital region. The amount of the funding is $334,000 and 30%
of which must be used for public school youth. Trustee Proctor shared
a document regarding President Bush?s job training initiatives and
asked that it be sent to the Board at a later time.

Trustee Thomas Rasmusson - Audit Committee
Rules

Trustee Rasmusson presented the audit committee
rules to the Board (the rules are on file with the official Board
materials.)

IT WAS MOVED by Trustee Rasmusson and supported
by Trustee Proctor to approve the audit committee rules.

Trustee Pelleran complimented Trustee Rasmusson
for his leadership on the Audit Committee.

Chairperson Laverty asked Mr. Howard if the rules
were reviewed by the College's legal counsel and auditor.

Trustee Pelleran reported that she attended the
College's Cinco de Mayo celebration on April 30. She felt it was a
wonderful event. Trustee Pelleran recognized Herminia Ortega and Raul
Martinez for their excellent work in organizing the event. She said
the Everett High School mariachi band, which is the only high school
band of this type in the area, was present and gave a tremendous
performance. Trustee Pelleran also reported that she attended a
dinner held on campus regarding Brown versus the Board of Education of
Topeka. This event was co-sponsored by the Lansing Regional Sister
Cities Commission and the Legislative Black Caucus. She said it was a
wonderful occasion which helped mark a historical event that
facilitated more opportunities for African-Americans, other students
of color, and for women. Trustee Pelleran apologized for not having
attended graduation on May 14, but a family matter required her
attention. She indicated it was the first time since she has served
on the Board that she missed graduation.

President's REPORT

President Cunningham thanked the Board for their
active involvement in College activities. She also thanked everyone
that supported Ms. Debbie Byrne?s ?Song from the Heart? celebration on
Sunday. President Cunningham felt it was an outstanding event and
expressed how proud she was of the Performing Arts Department.

Informational Items

College Spotlight - WorkFirst

President Cunningham asked Mr. Chris Holman,
Executive Director of the Business & Community Institute, to introduce
the presenters.

Ms. Sayles thanked the Board for the opportunity
to present on WorkFirst. She provided a PowerPoint presentation which
highlighted the WorkFirst Program (the presentation is on file with
the official Board materials.)

Ms. Allen stated that WorkFirst has helped her
family immensely. The program provided her a future off of welfare.
She has learned to be successful in her job and in her personal life.
Ms. Allen took the long-term care nurse aid training and successfully
completed the course with a 4.0. She thanked the Board for allowing
her to utilize the resources on campus and the ability to rewrite her
future.

Ms. McCullem shared that she is a single mother
of five children. She has been in the program for eight months and is
currently working toward her small business management degree. Ms.
McCullem stated that the WorkFirst Program provided information on how
to maintain employment and advance in her chosen career field. She
shared that the WorkFirst staff are always willing to assist her with
her homework, job search, and interview techniques.

Ms. Sayles read a letter on behalf of Ms. Camona
Richardson who was unable to be present due to childcare conflicts.

President Cunningham stated that copies of a
letter from the College's local legislators were available for public
inspection. The letter was signed by the following legislators:
Senator Virgil Bernero, Senator Patricia Birkholz, Senator Alan
Cropsey, Senator Valde Garcia, Representative Dianne Byrum,
Representative Mike Murphy, Representative Susan Tabor, Representative
Gretchen Whitmer, and Representative Larry Julian. For the record
President Cunningham read a portion of the letter, ?Although we
understand the desire of the Township to encourage growth and
development within its borders, we are also acutely aware of LCC's
mission to provide critical education and training, and the fact that
the tax dollars Lansing Township seeks to capture were voted on by the
taxpayers of this region to support education, not commercial and
residential development.? The letter also stated in part for both
parties to engage in good-faith negotiations; however, if we are
unsuccessful this legislative body will assume their role as public
officials and will work to advance efforts in both the House and
Senate which would impose a legislative solution to the dispute that
is consistent with the current state of DDA law. She said that the
letter is in support of the College's position and it is almost
unheard of to have received that many signatures on a letter.

President Cunningham thanked Ms. Sandy Lewis, who
serves as the College's local lobbyist from Muchmore, Harrington and
Smalley, for doing an outstanding job in ensuring the College's
message was forwarded. She thanked Chairperson Laverty for his
support in meeting with legislators. President Cunningham encouraged
everyone to thank those legislators for their support.

Out-of-District Service Needs

President Cunningham asked Vice President Ruth
Borger to address this agenda item.

Vice President Borger stated that Lansing
Community College was founded in 1957 to serve the higher education
and economic developments needs of this community. Over the years
these needs have changed as the community has changed. The economic
and workforce development needs are changing as evidenced by the
closings of major industries and businesses. These changes, along
with the Governor?s call for higher education institutions to educate
more college graduates, and continuous budget reductions cause the
College to think about every dollar being expended to the highest
needs. This resulted in a strategic initiative to examine
out-of-district service needs and how best to respond to those. An
internal task force has been working on this initiative and
researching the community needs. Three major areas have been
identified: St. Johns, Eaton Rapids, and Charlotte. Options to
finance service to these areas, which includes an invitation to these
districts to consider joining the LCC tax district, have also been
explored. Research has demonstrated the following things: the
College is extremely highly regarded, is considered a high-quality
institution comparable to four-year institutions including MSU, is
considered a first-choice institution, and there is interest in
joining the tax district. College representatives are interested in
sharing this information with community leaders, but more importantly
to learn about their community needs and possible ways to continue to
service them.

Action Items

April 19 Special Meeting/Budget Workshop and
April 19 Regular Meeting Minutes

President Cunningham presented the meeting
minutes for the Board's approval.

Trustee Proctor referred to page 4 of the April
19 regular meeting minutes, under Board member reports. He said he
didn?t think the word ?involved? was included in his statements.

2003-2004 Budget Reconciliation

President Cunningham asked Vice President Barbara
Larson to review the budget reconciliation. She thanked the Board for
their time and commitment in getting familiar with the budget.

Vice President Larson presented the 2003-2004
budget reconciliation to the Board for their approval (the
reconciliation is on file with the official Board materials.)

Trustee Pelleran recommended that the Board vote
on each item separately as the Board reviews each item.

There was no objection to Trustee Pelleran?s
recommendation.

IT WAS MOVED by Trustee Pelleran and supported by
Trustee Murray to approve the 2003-2004 budget reconciliation as
presented by the administration.

President Cunningham stated that there was one
change in the budget package that was presented last month. The
budget package, included in the Board packet, does not include a
three-year tuition increase proposal, but it includes a one-year
tuition increase. President Cunningham shared that the Michigan
Community College Association has taken a position that the State does
not dictate what the colleges should do regarding their tuition
increases. However, the College will be keeping tuition below the
consumer price index level. She asked Vice President Larson to
present the proposed budget.

Vice President Larson presented the 2004-2005
proposed budget which was included in the Board packet (it is on file
with the official Board materials.)

Trustee Pelleran moved to amend the budget as
follows: keep in-district tuition at the current rate of $54 with a
zero increase, increase out-of-district and out-of-state tuition by an
additional 50 cents. She said this would change the yield from
$450,000 to $325,000.

Trustee Pelleran?s motion to amend the budget
failed due to lack of support.

IT WAS MOVED by Trustee Rasmusson and supported
by Trustee Proctor to approve the 2004-05 proposed budget as presented
by the administration.

Trustee Rasmusson stated that from looking at it
from a broad point of view a remarkable thing has been going on at LCC.
The College has been increasing tuition at an arithmetic rate;
whereas the four-year universities are going up in a geometric rate.
The net effect is over time we will see lower and lower cost to
education for our community.

Trustee Pelleran expressed concern about
increasing parking fees over the next two years without reviewing it
again next year. She felt that we would not be giving due diligence
to this issue by putting an automatic increase for next year and
raising it an additional 20 cents considering rates had not been
raised since 1994. Trustee Pelleran would like to see an amendment on
the parking rates and would prefer to save next year?s decisions on
the budget for next year.

President Cunningham explained that one of the
reasons for increasing parking rates is the maintenance and repair
work that is needed. The original proposal was to double the increase
this year; however, it would be less painful to spread out the
increase over two years. Staff have calculated a need for setting
aside funds for necessary repairs to the parking structure.

Trustee Murray expressed gratitude toward her
fellow Board members and the administration for their willingness and
patience in taking time to answer questions and assist in her learning
curve. She said the issue of the tuition increase is something she
has seriously thought about since the Board began discussing it months
ago. What has stayed with her is the number of conversations the
Board has had about what a tremendous value an education from LCC is
in comparison to what other community colleges in the state charge.
She felt it is important that we be very careful about attaching the
appropriate price to the service that is offered at LCC. With the
work and decisions made by former Boards, particularly with the new
facilities that will serve LCC students, she wants to be very cautious
about protecting those initial investments and ensuring that the funds
are available to see those projects through to completion. She said
this has not been easy; however, she will be voting in support of the
increase in tuition as proposed in the budget. Trustee Murray
requested that a future agenda item be a discussion of the College's
financial situation vis a vis the fund balance. There are different
opinions regarding what level the fund balance should be at. She felt
that it is important that the Board have a discussion on where they
envision the fund balance in the future similar to how former Boards
have looked at building projects.

Trustee Brannan stated that he is not in support
of the parking fee increases and therefore, will not be supporting the
current motion.

Trustee Pelleran asked Trustee Rasmusson to
accept a friendly amendment to increase parking by 20 cents in this
budget and then review it again next year.

Trustee Rasmusson responded that not having had
enough time to reflect on her suggestion; he would not accept her
friendly amendment.

Trustee Murray asked if the parking rate increase
is the only item that extends beyond this budget year.

Staff responded yes.

Trustee Murray said that was a concern with the
tuition, and she would also prefer a one year increase in parking
rates.

Trustee Pelleran stated that she would prefer
that the Board vote down the current motion and revise the budget with
a second motion that removes the 2nd year parking rate
increase and vote on the budget to include only a one year increase.

Trustee Rasmusson opposed Trustee Pelleran?s
recommendation. He said parking spaces cost between $10,000 and
$30,000 each and the College has been very efficient with its parking
and it is important to budget far ahead.

Chairperson Laverty stated the College's parking
rates are reasonable compared to the City and Michigan State
University?s rates. He could not understand voting down the entire
budget based only on the 20 cent increase. Chairperson Laverty stated
he would be supporting the administration?s recommendation.

Trustee Murray questioned the rationale for
setting the amount of increase for next year at this point in time
versus adopting it next year.

President Cunningham responded that one of the
reasons is that the College is trying to grow its parking reserves.
Currently Star Card costs are absorbed by the College, and the College
has been subsidizing parking; therefore, the institution needs to
replenish funds so monies are not pulled from other areas to subsidize
parking related expenses. There are also future necessary maintenance
and repairs.

Vice President Larson stated that there is
preliminary work being done with parking consultants regarding the
potential of adding a new parking structure behind the new
administration building. It is estimated that the structure would
cost approximately $8 to $9 million to build a structure of 442
spaces.

Trustee Pelleran felt that since this is
preliminary then it doesn?t necessitate a decision from the Board now
for next year?s increase. Since there is a regular budget cycle every
year this issue would surface again and it would give the Board enough
time to review this issue. She also felt that there would be a less
need for parking due to the movement of the technical training
activities from the main campus to the M-TEC where the College is
subsidizing parking completely free of charge to everyone. Trustee
Pelleran felt that there is not a demand to deal with this issue right
now and she would like to postpone it.

IT WAS MOVED by Trustee Pelleran and supported by
Trustee Brannan to amend the current motion on the proposed budget to
remove increasing the parking rates by 20 cents for the second year.

Trustee Murray asked if a portion of the funds
generated by the increase in parking rates would begin a reserve for
future parking spaces.

Vice President Larson responded, yes, that
potential was discussed.

Trustee Murray asked if the issue was future
parking.

Vice President Larson responded that it also
includes ongoing expenditures for parking operations as they continue
to increase. Currently, the College is paying $160,000 to the City of
Lansing to lease parking spaces. Costs have risen in part to the
College providing better parking services than it was five years ago.
With the M-TEC the College will be essentially subsidizing 715 spaces
and maintenance for those spaces will be needed as well. Vice
President Larson stated that she is not suggesting that this money be
earmarked only for the reserve because there will be additional
parking costs as more spaces are added at the West Campus.

Trustee Murray stated that since the College will
not be charging for parking at the West Campus, is there a clear
picture now of how much of the revenue generated by the increase will
be set aside.

Vice President Larson responded that a majority
could be set aside.

President Cunningham stated that the funds could
go towards replacing or expanding current parking.

Trustee Pelleran repeated that these are only
preliminary discussions and the need is unknown. She asked if there
has been consideration to adding a parking fee at the West Campus and
also at other campuses Lansing Community College operates.

President Cunningham responded that there has
been discussion regarding adding a gate to the facility if needed, and
the College could add a parking fee if it becomes necessary. She
stated that it is not uncommon throughout the state for community
colleges that have more than one campus to charge for parking at one
campus and not at another.

Trustee Pelleran stated one of the items of
discussion that was on the table is that fees would be used for
maintenance and construction at the West Campus. She said if the
increase will go toward the maintenance and construction of the
parking at the West Campus there ought to be some consideration for
those folks paying their fair share and not just arbitrarily
increasing parking on a two-year basis. Trustee Pelleran felt that
the need hasn?t been identified. She asked if there has been, along
with the preliminary discussions, consideration of whether or not the
need to rent space from the City will diminish once the move to the
West Campus occurs.

Vice President Larson responded yes, that had
been discussed. If the number of spaces needed from the City
decreases, then the savings and the additional revenue could pay debt
service payments if a parking structure was built.

Chairperson Laverty restated the amendment for
the record: the 20 cent parking fee increase for the second year be
omitted from the budget. He asked for a roll call vote.

Dr. Brown presented the annual results inventory
report, which was included in the Board packet (it is on file with the
official Board materials.)

There was a question and answer period throughout
the presentation.

Finance - Approval of Bids

President Cunningham asked Ms. Beckie Beard to
review the bids.

Ms. Beard presented the following bids for the
Board's approval.

Staliflex Welding Fume Extraction for the
M-TEC building in the amount of $192,128.80. The bid was
awarded to Purity Cylinder Gas of Lansing, Michigan.

Concrete for the HHPSC building in the amount
of $529,700. The bid was awarded to Kares Construction of
Charlotte, Michigan.

Painting and Wall Covering for the HHPSC
building in the amount of $310,292. The bid was awarded to Trident
National Corporation from Detroit, Michigan.

Arts & Sciences 4th Floor
renovations Phase One - Laboratory Casework and Equipment in the
amount of $115,932. The bid was awarded to Farnell Equipment from
Troy, Michigan.

Security Assessment Services in the amount of
$103,000. The bid was awarded to Neohapsis of Chicago, Illinois.

Trustee Pelleran had questions regarding the A&S
4th floor renovations bid. She thought this area had been
torn up three times and renovated in the last four years. She asked
if those rooms are used exclusively for labs or are they used to do
lecture and lab. If they are used to do lecture and lab, could we at
this time make sure they are used exclusively for labs and keep the
lectures at a different location so that we can maximize our lab space
there and not renovate them again this year. With the new health
training facility there should be ample lab room.

Vice President Larson responded that there have
been renovations made in the Arts & Sciences building over the years;
however, not to the same rooms. It has been part of a plan to
renovate the Science labs because the facility is over 30 years old
and the Science enrollment is increasing. The renovations are being
made on the same floor, but not to the same area. Vice President
Larson listed the various renovations that have been completed in the
Arts and Sciences building over the years.

Trustee Pelleran asked if the room that is
scheduled for renovation is being used exclusively for labs right now
or are lectures also being given in that room. If so, she asked if it
were possible that lectures could be given in another room to free up
the space for lab usage.

Dr. Gary Knippenberg, Dean of the Liberal Studies
Division, responded that what is driving the construction is what is
good for students. The Science faculty is trying to achieve
integrated labs and lecture so the rooms are being designed to
accommodate this need, which is consistent with current guidelines for
instruction in Science.

Trustee Pelleran asked if there will be
sufficient lab space once the health training facility is open.

Dr. Knippenberg responded that what was driving
the need for additional lab space is the health careers area. At the
current time they cannot provide enough sections, for example, of
anatomy and physiology to support the health programs. This is part
of a 10-year plan and it will allow the College to keep up with the
demand in health careers and particularly in the biological sciences.

Trustee Pelleran asked if those labs currently
can be utilized as is for lab use only without the lecture and if it
is absolutely necessary to have it in the same room. She also asked
if once the health training facility is open would that alleviate the
need for excess space.

Dr. Knippenberg responded that there are no plans
in the health building to have science labs. In terms of necessity,
it is absolutely necessary. At most colleges they leave 30 to 40
minutes between labs for set up; however, Lansing Community College
schedules labs 10 minutes apart from 8 a.m. until 9 p.m. Monday
through Thursday and again starting at 8:00 a.m. on Fridays and
Saturdays. He said the current space is being used to the maximum
amount.

Trustee Pelleran asked again if there are no
laboratory training classrooms planned to be built in the health
training facility.

Dean William Darr responded that Liberal Studies
provides the prerequisites for the health careers programs.
Therefore, chemistry, physics or similar labs will not be housed in
the new health care facility. As enrollment increases in the health
careers programs there is more demand for the Science classes.

Trustee Pelleran asked if there is absolutely no
future consideration for doing preliminary classes for health training
in the health training facility.

Dr. Knippenberg responded that it is important to
have support for your labs in one location otherwise the preparation
areas are duplicated. Therefore, the science facilities have been
maintained in one location.